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Tips when Buying a Foreclosed Home

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By : Sonia Smith    99 or more times read
A tide of foreclosed homes has continued to sweep the exhausted housing market, brining down home values, dislocating families and making the government clambering to manage the crisis. Nevertheless, many homebuyers are seeing a one chance in the gloomy news and a good opportunity to find a wonderful bargain in buying a foreclosed home.

These days, it is anyone’s guess when the housing market will finally hit bottom. If you are right now looking fro a home to purchase and plan on living in it for a while, there are truly plenty of bargains to find in foreclosed homes.

Before buying a foreclosed home, here are tips that will help you in your decision-making:

  1. Find out how long the foreclosed home has been left vacant. A longer vacancy also means more damage in most instances. If it has not been occupied for some time, you could expect to find that the sewer gases have backed up, plumbing seals have dried out, bugs inside the sewer that could get inside the house. The toilets and sinks damaged too.

  2. Make a personal visit to the house. It is necessary to see the actual situation of the foreclosed home yourself to be able to make a wise decision in buying it.

  3. Take into consideration the kind of neighborhood where the home is located. Your research includes a through neighborhood evaluation. You will not be able to get back the repair costs if the home is in a badly depressed area with high crime rates and plenty of homes foreclosed. Check out the neighborhood appeal at different times of the day and including at night.

  4. Check out the property landscaping. Try to determine if the home has been neglected, there are untrimmed trees, vines and bushes continuing to grow and deteriorate the home. Check out if vines crawl through the windows or the roots in the foundation that can weaken it.

  5. Perform a home inspection. It is important to prevent further damage to the home. Home inspectors will be able to determine important upgrades and repairs that the home needs.

  6. Plan your budget carefully and do not allow a low price tag to lure you into a quick purchase. Ask yourself repeatedly if you have enough resources for costly and extensive repairs that most foreclosed homes need. Do your research well to avoid additional risks.

  7. Determine if the home is winterized. Avoid turning on utilities unless you know the exact condition of the pipes. Water will leak into walls if the pipes cracked during the cold season and may take hold when you turn on back the water.

If you are able to research on a foreclosed home thoroughly, you might be able to find a great bargain from among the many homes sold in foreclosure. You may find to your delight the home of your dreams at a lower price. When considering buying a foreclosed home whether as a permanent home or a rental or investment property, always seek the advise and opinions of real estate experts, home inspectors and the federal housing staff.

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